At the end of the 2021 year, the accounting staff at Prestige Design Flooring Inc. (PDF) have the following unadjusted trial balance as at December 31, 2021. Cash 6,700 Accounts Receivable 24,327 Supplies 4,231 Prepaid Insurance 5,700 Equipment 896,000 Accumulated Depreciation (Equipment) 112,600 Other Assets 64,225 Accounts Payable 14,327 Unearned Service Revenue 16,600 Note Payable (due 2026) 80,000 Common Shares 289,540 Retained Earnings, 12/31/2020 38,454 Service Revenue 802,427 Wages Expense 131,650 Rent Expense 218,415 Interest Expense 2,700 Total $1,353,948 $1,353,948 The accounting staff have identified the following items where a year end accrual entry may be required. a. PDF purchased 12-month insurance on July 1, 2021. It is reported as prepaid insurance in the trial balance above. b. A physical inventory count showed that $690 of office supplies is on hand at year end. c. PDF’s equipment depreciation was $31,980 for the 2021 year. d. An analysis showed the unearned service revenue above had been reduced to $12,420 after additional service was provided to customers prior to the end of year. e. Wages in the amount of $3,800 were owed to employees but were unpaid and unrecorded at year-end. f. Six months' interest at 6% on the note was paid on August 31. Interest for the period from September 1 to December 31 has not been paid or recorded. (2) Prepare an adjusted trial balance for PDF Inc. Add any additional accounts that may be required. PDF Inc. Adjusted Trial Balance (3) From the Adjusted Trial Balance that you have prepared for PDF Inc. use this information to prepare the following 3 Financial Statements. A. Please prepare a statement of earnings for PDF Inc. for the year ended December 31, 2021. B. Please prepare a statement of retained earnings for PDF Inc. at December 31, 2021. C. Please prepare a statement of financial position for PDF Inc. as at December 31, 2021
At the end of the 2021 year, the accounting staff at Prestige Design Flooring Inc. (PDF) have the following
unadjusted
Cash 6,700
Accounts Receivable 24,327
Supplies 4,231
Prepaid Insurance 5,700
Equipment 896,000
Other Assets 64,225
Accounts Payable 14,327
Unearned Service Revenue 16,600
Note Payable (due 2026) 80,000
Common Shares 289,540
Service Revenue 802,427
Wages Expense 131,650
Rent Expense 218,415
Interest Expense 2,700
Total $1,353,948 $1,353,948
The accounting staff have identified the following items where a year end accrual entry may be required.
a. PDF purchased 12-month insurance on July 1, 2021. It is reported as prepaid insurance in the trial balance
above.
b. A physical inventory count showed that $690 of office supplies is on hand at year end.
c. PDF’s equipment depreciation was $31,980 for the 2021 year.
d. An analysis showed the unearned service revenue above had been reduced to $12,420 after additional
service was provided to customers prior to the end of year.
e. Wages in the amount of $3,800 were owed to employees but were unpaid and unrecorded at year-end.
f. Six months' interest at 6% on the note was paid on August 31. Interest for the period from September 1 to
December 31 has not been paid or recorded.
(2) Prepare an adjusted trial balance for PDF Inc. Add any additional accounts that may be required.
PDF Inc.
Adjusted Trial Balance
(3) From the Adjusted Trial Balance that you have prepared for PDF Inc. use this information to prepare the
following 3 Financial Statements.
A. Please prepare a statement of earnings for PDF Inc. for the year ended December 31, 2021.
B. Please prepare a statement of retained earnings for PDF Inc. at December 31, 2021.
C. Please prepare a
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